Question

The equivalent units earned value technique is a further refinement of the units complete technique. Which of the following statements is true about this technique?

a) It assesses earned value precisely for each unit of output
b) It relies solely on budget values for estimation
c) It doesn’t consider unit-based evaluation
d) It doesn’t account for earned value in production

Answer 1

The equivalent units earned value technique accurately measures earned value for each unit of output, refining the units complete technique used in project management.

Step-by-step explanation:

The equivalent units earned value technique is a method used in project management and it's a refinement of the units complete technique. The true statement about this technique is: a) It assesses earned value precisely for each unit of output. This approach provides a more accurate assessment of earned value by incorporating the precise measurement of work completed, and it helps in managing production projects effectively by identifying the actual value of work performed.